Likud MK Haim Katz set to be charged with tax dodging
29 Oct 2020

Attorney General Avichai Mandelblit informed Likud MK Haim Katz Tuesday that he intends to indict him for alleged tax offenses, pending a hearing.

Mandelblit’s intention to do so was first reported Monday night by Channel 12.

Katz, who already faces another indictment on fraud and breach of trust charges, is alleged to have hidden income totaling NIS 2.2 million (around $650,000) over the course of 12 years.

The income came from seven properties Katz owns, some of which are registered in his name and the others under the names of family members.

In February, Katz received parliamentary immunity to shield himself from charges of fraud and breach of trust, for allegedly advancing a bill on corporate bond repayment pushed by a financial consultant who was a close friend and financial adviser to Katz himself, and which benefited him financially once it became law. Katz was also accused of concealing those conflicts of interest.

Mandelblit has urged the High Court of Justice to overturn the decision to shield Katz and allow the former welfare minister to be prosecuted.

On Tuesday evening Katz said he hoped the hearing process would disprove “the false accusations against me, and that this will end [my] persecution.”

He said that “the tax issue has been blown out of proportion. There is not a person in Israel who has been indicted under similar circumstances.”

After Mandelblit’s August 2019 decision to indict Katz in the corporate bond affair, the then-welfare minister resigned from the cabinet, adhering to a practice established in the 1990s with the court-upheld resignations of indicted cabinet members Aryeh Deri and Raphael Pinhasi.

But in February, Knesset members voted 62 to 43 in favor of granting Katz parliamentary immunity from the charges, preventing Mandelblit from filing an indictment against the former welfare minister.

In a written opinion presented to the High Court in July as part of a petition by the Movement for Quality Government in Israel, Mandelblit said the step constituted a “deviation from authority” and was characterized by “extreme unreasonableness.”

Mandelblit argued that Katz’s alleged crimes were not committed in the context of his legislative duties, making him ineligible for immunity.

According to the 2005 law on parliamentary immunity, “substantive immunity” — a form of parliamentary immunity that permanently blocks an indictment and not just while the accused is a serving MK — can be granted by the Knesset for actions the House Committee finds were committed in the legitimate fulfillment of parliamentary duties.

Katz is one of several Likud lawmakers facing graft charges.

Read more at The Times of Israel

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